[House Report 113-341]
[From the U.S. Government Publishing Office]
113th Congress Rept. 113-341
HOUSE OF REPRESENTATIVES
2d Session Part 1
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TO AMEND THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 TO IMPROVE
UNITED STATES-ISRAEL ENERGY COOPERATION, AND FOR OTHER PURPOSES
_______
February 5, 2014.--Ordered to be printed
_______
Mr. Upton, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 3683]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3683) to amend the Energy Independence and
Security Act of 2007 to improve United States-Israel energy
cooperation, and for other purposes, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Statement of General Performance Goals and Objectives............ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 6
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Purpose and Summary
H.R. 3683, a bill to amend the Energy Independence and
Security Act of 2007 to improve United States-Israel energy
cooperation, and for other purposes, was introduced by
Representatives Upton, Waxman, Terry, Gene Green, and Bilirakis
on December 10, 2013. The bill amends the Energy Independence
and Security Act of 2007 (EISA, Public Law 110-140, 41 U.S.C.
17337) to strengthen the collaboration between the United
States and Israel on energy development and to bolster the
existing United States-Israel energy relationship by
encouraging increased cooperation between the two countries.
The bill encourages inter-governmental collaboration in energy
technology innovation, technology transfer, and analysis of
geopolitical implications of new natural resource development,
while also encouraging private sector business development. The
bill also facilitates continued engagement between the
countries to share best practices in a number of areas,
including: research, development, and deployment of renewable
energy and energy efficiency, energy infrastructure
cybersecurity; environmental management of deep water
exploration; and coastal protection and restoration. The bill
also expands an existing United States-Israel grant program to
include projects focused on natural gas and water efficiency.
Background and Need for Legislation
U.S.-Israel energy relationship
The United States and Israel have a long-standing
relationship in joint energy research and development. The two
countries entered into an Energy Research and Development
Agreement in 1984 and into a subsequent Energy Cooperation
Agreement in 1996. The later agreement established cooperation
and exchange of scientific and technical information in a wide
range of areas including renewable energy, fossil energy, and
electric transmission. In addition, research cooperation
entities exist covering a wide array of topics, notably through
the United States-Israel Binational Science Foundation
(BSF),\1\ the United States-Israel Binational Industrial
Research and Development Foundation (BIRD),\2\ and United
States-Israel Science and Technology Foundation (USISTF).\3\
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\1\Founded in 1972, BSF is directed by a ten-person board (five
American, and five Israeli) and operates out of Israel. BSF promotes
US-Israeli scientific relations by awarding about $15 million annually
in grants for American-Israeli research projects.
\2\Established in 1977, BIRD's purpose is to ``stimulate, promote
and support industrial R&D of mutual benefit to the U.S. and Israel.''
Specifically, BIRD (1) matches services between American and Israeli
private sector companies that seek to use industrial R&D to create an
innovative product, and (2) provides funding for ``up to 50 percent of
project development and product commercialization costs.''
\3\USISTF is a Washington, DC-based non-profit founded by the
Department of Commerce and the Israeli Ministry of Industry, Trade and
Labor to strengthen the US-Israeli ``scientific and R&D relationship''
through business collaboration. USISTF is the ``funding and
administrative arm'' of the US-Israel Science and Technology
Commission, which was established in 1994 to promote ``scientific,
technological, and economic cooperation'' between the US and Israel.
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Energy Independence and Security Act of 2007
In December 2007, Congress passed the Energy Independence
and Security Act of 2007 (EISA 2007). Section 917 of EISA 2007
was included to further the energy cooperation of the two
countries by establishing a U.S.-Israel energy cooperation
partnership to support research, development, and deployment of
energy efficiency and renewable energy measures. The provision
included a grant program for joint ventures between United
States and Israeli business and academic persons in the areas
of research, development, demonstration, and commercialization
of renewable energy and energy efficiency. Section 917 of EISA
2007 has a statutory termination date that is 7 years after
December 19, 2007, meaning the U.S.-Israel energy cooperation
program will expire at the end of 2014 if it is not extended.
Fossil energy discoveries in Israel
Since enactment of EISA 2007, significant new natural gas
discoveries have been made in and around Israel. In 2009 and
2010, substantial natural gas discoveries were made off the
coast of Israel in the Tamar and Leviathan fields. The Tamar
and Leviathan fields potentially have the capacity to support
Israel's domestic gas consumption with reserves left for
exports. The U.S. Geological Survey estimates that there are
122 trillion cubic feet (TCF) of recoverable gas in the region,
most of it in Israeli waters.\4\ In March 2012, another
offshore discovery was made northwest of Tel Aviv, with an
estimated 1.8 TCF of natural gas.\5\ In total, Israel's known
offshore natural gas reserves are estimated around 30 trillion
cubic feet. However, according to the U.S. International Trade
Administration, ``because Israel does not yet have the physical
infrastructure and technical workforce to support this fast
growing industry, local companies are eager to team up with
U.S. companies.''\6\
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\4\U.S. Geological Survey, ``Assessment of Undiscovered Oil and Gas
Resources of the Levant Basin Province,'' available at http://
pubs.usgs.gov/fs/2010/3014/pdf/FS10-3014.pdf.
\5\Globes Israel Business News, ``Oil and Gas Found at Gabriella,
Yitzhak Licenses'' (Mar. 13, 2012), available at http://
www.globes.co.il/serveen/globes/docview.asp?did=1000732741.
\6\U.S. International Trade Administration, ``Mission Statement Oil
and Gas Trade Mission to Israel,'' available at http://export.gov/
trademissions/israel2012/eg_main_048039.asp#P11_3522.
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Need for legislation
Recognizing that the United States and Israel are
international partners, and that energy is essential to the
economic and national security of both nations, continued
cooperation on a broader range of energy-related issues is in
the long term interests of both the United States and Israel.
Indeed, the United States and Israel have cooperated in the
past on energy projects benefiting both nations. Israeli
scientists have undertaken research into alternative and
renewable energy resources, and as described herein,
significant new natural gas resources in and around Israel have
been discovered.
The U.S. government and U.S. businesses have significant
expertise and experience in the responsible development of
onshore and offshore gas resources, including the development
and utilization of deep water gas technologies, hydraulic
fracturing and horizontal drilling technologies. Thus, it
benefits both countries to extend and expand the existing U.S.-
Israel energy partnership provided under Section 917 of EISA
2007 to include natural gas technologies and environmental
protection and restoration. H.R. 3683 provides the framework to
ensure continued cooperation between the United States and
Israel in these critical areas, as well as those areas
originally contemplated under Section 917 of EISA 2007.
Hearings
The Committee on Energy and Commerce has not held hearings
on the legislation.
Committee Consideration
On December 10 and 11, 2013, the Committee on Energy and
Commerce met in open markup session and ordered H.R. 3683
favorably reported to the House, without amendment, by a voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 3683 reported. A motion by Mr. Upton to order H.R. 3683
reported to the House, without amendment, was agreed to by a
voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee made findings that are
reflected in this report.
Statement of General Performance Goals and Objectives
H.R. 3683 provides for greater cooperation between the
United States and Israel on energy related activities.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
3683 would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI
of the Rules of the House of Representatives, the Committee
finds that H.R. 3683 contains no earmarks, limited tax
benefits, or limited tariff benefits.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 16, 2014.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3683, a bill to
amend the Energy Independence and Security Act of 2007 to
improve United States-Israel energy cooperation, and for other
purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 3683--A bill to amend the Energy Independence and Security Act of
2007 to improve United States-Israel energy cooperation, and
for other purposes
Summary: H.R. 3683 would reauthorize a grant program,
administered by the Department of Energy (DOE), which supports
joint ventures between U.S. and Israeli entities aimed at
promoting certain energy-related technologies. CBO estimates
that implementing H.R. 3683 would cost $10 million over the
2015-2019 period, assuming appropriation of the necessary
amounts. Because enacting the legislation could affect net
direct spending, pay-as-you-go procedures apply; however, CBO
estimates that any such effects would be negligible. H.R. 3683
would not affect revenues.
H.R. 3683 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3683 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------
2014-
2014 2015 2016 2017 2018 2019 2019
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level.................... 0 2 2 2 2 2 10
Estimated Outlays................................ 0 2 2 2 2 2 10
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
3683 will be enacted in fiscal year 2014. CBO estimates that
implementing H.R. 3683 would cost $10 million over the 2015-
2019 period. We also estimate that enacting the bill would
increase both offsetting receipts and direct spending, but that
any net changes in direct spending would be negligible.
Spending subject to appropriation
H.R. 3683 would extend and modify a provision of the Energy
Independence and Security Act of 2007 that authorizes DOE to
make grants to support joint ventures between U.S. and Israeli
government units, businesses, academic institutions, or
nonprofit entities to promote certain energy-related
technologies. Current law authorizes DOE to provide such
grants, through 2014, for projects related to energy-efficient
and renewable technologies. H.R. 3683 would extend DOE's
authority to make such grants through 2024 and also expand the
types of eligible projects to include those that utilize
natural gas technologies and projects aimed at improving the
energy efficiency of certain water treatment technologies. The
bill also would authorize DOE to establish a joint United
States-Israel Center to support additional energy-related
collaboration between the two countries.
According to DOE, appropriations for financial assistance
to support energy-related collaboration between the U.S. and
Israel have averaged about $1.5 million annually over the past
five years. CBO estimates that, under H.R. 3683, DOE would
spend slightly more--about $2 million annually--to continue
assistance for projects using energy-efficient and renewable
technologies, provide additional assistance for projects
utilizing technologies that would become newly eligible for
grants under the bill, and established the proposed center to
support further collaboration between the United States and
Israel.
Direct spending
By extending DOE's authority to provide grants to support
U.S.-Israeli energy collaboration, the legislation would also
extend the agency's authority to accept donations and spend
those amounts, without further appropriation, for activities
authorized by the bill. Based on information from DOE, CBO
estimates that any such donations would be well below $500,000
in any year, and that any resulting net changes in direct
spending would be negligible.
Intergovernmental and private-sector impact: H.R. 3683
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: Megan Carroll; Impact
on state, local, and tribal governments: J'nell L. Blanco;
Impact on the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Duplication of Federal Programs
No provision of H.R. 3683 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting H.R. 3683
specifically directs no rule makings within the meaning of 5
U.S.C. 551 to be completed.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. United States-Israel energy cooperation
Subsection (a) amends EISA to add findings regarding
cooperation between the United States and Israel on energy
related matters.
Subsections (b), (c), and (d) amend the EISA section 917
grant program to include natural gas and improvement of energy
efficiency and the overall performance of water desalination,
wastewater treatment and reclamation, and other water treatment
technologies.
Subsection (e) permits the Secretary to enter into energy
related cooperative agreements supporting and enhancing
dialogue and planning involving international partnerships
between the Department and the Government of Israel and its
ministries, offices, and institutions. The subsection also
permits the Secretary to establish a joint United States-Israel
Center to further dialog and collaboration to develop energy
efficiency, existing energy development programs, and more
robust academic cooperation in energy innovation technology and
engineering, water science, technology transfer, and analysis
of geopolitical implications of new natural resource
development and associated areas.
Subsection (f) provides that the EISA section 917 grant
program shall terminate on September 30, 2024.
Section 2. United States-Israel Energy Cooperation Working Group
Subsection (a) is a sense of Congress related to
cooperation between the United States and Israel on energy
security issues.
Subsection (b) directs the Secretary of Energy and the
Secretary of State to seek to establish an Energy Cooperation
Working Group within the semi-annual United States-Israel
Strategic Dialogue.
Subsection (c) provides that the purpose of the Energy
Cooperation Working Group is to strengthen dialogue between the
United States and Israel on a range of energy issues.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
* * * * * * *
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
* * * * * * *
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
* * * * * * *
SEC. 917. UNITED STATES-ISRAEL ENERGY COOPERATION.
(a) Findings.--Congress finds that--
(1) it is in the highest national security interests
of the United States to develop [renewable] covered
energy sources;
* * * * * * *
(4) those programs have made [possible many]
possible--
(A) many scientific, technological, and
commercial breakthroughs in the fields of life
sciences, medicine, bioengineering,
agriculture, biotechnology, communications, and
others; and
(B) significant contributions to the
development of renewable energy and energy
efficiency through the established programs of
the United States-Israel Binational Industrial
Research and Development Foundation and the
United States-Israel Binational Science
Foundation;
* * * * * * *
(6) Israeli scientists and engineers are at the
forefront of research and development in the field of
[renewable] covered energy sources; [and]
(7) enhanced cooperation between the United States
and Israel for the purpose of research and development
of [renewable] covered energy sources would be in the
national interests of both countries[.];
(8) United States-Israel energy cooperation, and the
development of natural resources by Israel, are
strategic interests of the United States;
(9) Israel is a strategic partner of the United
States in water technology;
(10) the United States can play a role in assisting
Israel with regional safety and security issues;
(11) the National Science Foundation of the United
States should collaborate with the Israel Science
Foundation;
(12) the United States and Israel should strive to
develop more robust academic cooperation in energy
innovation technology and engineering, water science,
technology transfer, and analysis of geopolitical
implications of new natural resource development and
associated areas;
(13) the United States supports the goals of the
Alternative Fuels Administration of Israel;
(14) the United States strongly urges open dialogue
and continued mechanisms for regular engagement and
encourages further cooperation between applicable
departments, agencies, ministries, institutions of
higher education, and the private sectors of the United
States and Israel on energy security issues,
including--
(A) identifying policy priorities associated
with the development of natural resources of
Israel;
(B) discussing best practices to secure cyber
energy infrastructure;
(C) best practice sharing;
(D) leveraging natural gas to positively
impact regional stability;
(E) improving energy efficiency and the
overall performance of water desalination,
wastewater treatment and reclamation, and other
water treatment technologies;
(F) technical and environmental management of
deep-water exploration and production;
(G) coastal protection and restoration;
(H) academic outreach and engagement;
(I) private sector and business development
engagement;
(J) regulatory consultations;
(K) leveraging alternative transportation
fuels and technologies; and
(L) any other areas determined appropriate by
the United States and Israel;
(15) the United States acknowledges the achievements
and importance of the United States-Israel Binational
Industrial Research and Development Foundation and the
United States-Israel Binational Science Foundation and
supports continued multiyear funding to ensure the
continuity of the programs of the Foundations; and
(16) the United States and Israel have a shared
interest in addressing their immediate, near-term, and
long-term energy and environmental challenges.
(b) Grant Program.--
(1) Establishment.--In implementing the agreement
entitled the ``Agreement between the Department of
Energy of the United States of America and the Ministry
of Energy and Infrastructure of Israel Concerning
Energy Cooperation'', dated February 1, 1996, the
Secretary shall establish a grant program in accordance
with the requirements of sections 988 and 989 of the
Energy Policy Act of 2005 (42 U.S.C. 16352, 16353) [to
support research, development, and commercialization of
renewable energy or energy efficiency] to support
energy efficiency, established energy development
programs, and research, development, and
commercialization of covered energy.
(2) [Types of] Covered energy.--In carrying out
paragraph (1), the Secretary may make grants to
promote--
(A) * * *
* * * * * * *
(F) wave and tidal energy; [and]
(G) advanced battery technology[.];
(H) natural gas energy, including
conventional and unconventional natural gas
technologies and natural gas projects conducted
by or in conjunction with the United States-
Israel Binational Science Foundation, the
United States-Israel Binational Industrial
Research and Development Foundation, and the
United States-Israel Science and Technology
Foundation; and
(I) improvement of energy efficiency and the
overall performance of water desalination,
wastewater treatment and reclamation, and other
water treatment technologies.
(3) Eligible applicants.--An applicant shall be
eligible to receive a grant under this subsection if
the project of the applicant--
(A) addresses a requirement in the area of
improved [energy efficiency or renewable]
covered energy sources, as determined by the
Secretary; and
* * * * * * *
(c) International Partnerships.--
(1) In general.--The Secretary may, subject to the
availability of appropriations, enter into cooperative
agreements supporting and enhancing dialogue and
planning involving international partnerships between
the Department and the Government of Israel and its
ministries, offices, and institutions. The cooperative
agreements shall include energy activities in addition
to those involving research and development, and shall
ensure that the shared technologies and other benefits
of energy cooperation promote the domestic energy
production of both nations.
(2) Federal share.--The Secretary may not pay more
than 50 percent of the costs described in paragraph
(1).
(3) Annual reports.--The Secretary shall submit to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate an annual report that
describes--
(A) actions taken to carry out this
subsection; and
(B) any projects under this subsection for
which the Secretary requests funding.
(d) United States-Israel Center.--The Secretary may establish
a joint United States-Israel Center based in an area of the
United States with the experience, knowledge, and expertise in
offshore energy development to further dialogue and
collaboration to develop energy efficiency, existing energy
development programs, and more robust academic cooperation in
energy innovation technology and engineering, water science,
technology transfer, and analysis of geopolitical implications
of new natural resource development and associated areas.
[(c)] (e) Termination.--The grant program and the advisory
committee established under this section terminate on [the date
that is 7 years after the date of enactment of this Act]
September 30, 2024.
[(d) Authorization of Appropriations.--The Secretary shall
use amounts authorized to be appropriated under section 931 of
the Energy Policy Act of 2005 (42 U.S.C. 16231) to carry out
this section.]
* * * * * * *